Air France-KLM (AFLYY) versus The Competition Critical Review

Air France-KLM (OTC:AFLYY) is one of 36 publicly-traded companies in the “Air transportation, scheduled” industry, but how does it weigh in compared to its rivals? We will compare Air France-KLM to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Air France-KLM and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air France-KLM	$32.49 billion	$1.01 billion	8.98
Air France-KLM Competitors	$15.89 billion	$442.30 million	7.86

Air France-KLM has higher revenue and earnings than its rivals. Air France-KLM is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Air France-KLM and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air France-KLM	0.39%	19.62%	0.34%
Air France-KLM Competitors	1.65%	-24.83%	2.54%

Risk & Volatility

Air France-KLM has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Air France-KLM’s rivals have a beta of 2.38, meaning that their average share price is 138% more volatile than the S&P 500.

Institutional & Insider Ownership

0.9% of Air France-KLM shares are held by institutional investors. Comparatively, 54.7% of shares of all “Air transportation, scheduled” companies are held by institutional investors. 4.4% of shares of all “Air transportation, scheduled” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Air France-KLM and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air France-KLM	0	1	0	0	2.00
Air France-KLM Competitors	868	2463	3530	208	2.44

As a group, “Air transportation, scheduled” companies have a potential upside of 46.77%. Given Air France-KLM’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Air France-KLM has less favorable growth aspects than its rivals.

Summary

Air France-KLM rivals beat Air France-KLM on 9 of the 13 factors compared.

About Air France-KLM

AIR FRANCE-KLM is an airline company. The Company’s core business is passenger transport, cargo transport, and aircraft maintenance services. The Group is the world leader in terms of international passenger traffic; and its cargo activity (not including integrators) and is one of the world’s major maintenance service providers. The Group structure is simple: a holding company with two airline subsidiaries. Air France-KLM has established a set of clearly defined commitments to ensure that its strategy of profitable growth goes hand in hand with environmental quality and social progress.